There are many indicators which can be used for it. I personally prefer MACD. First of all - because MACD is Moving Average Convergence/Divergence indicator. And because there are some good MACD divergence indicators but for MT4 sorry. If someone creates MACD divergence for MT5 and place it to CodeBase or to Market for low price - it will be very good (and it will be very popular indicator for MT5).

I used MACD divergence for real trading for many months with very good results.

This is the rules for MACD divergence (taken from 'Achelis - Technical Analysis from A to Z'):

Divergence line on Awesome Oscillator is acceptable: were going through histogramm body OR not?, must have Opposite slope versus Price trend line OR must have Increase/Decrease in slope versus Price trend line ?

i work on an indicator to determinate the Divergence on Awesome Oscillator. ( Regular Divergence & Hidden Divergence )

Divergence — the first analyzed bottom of the indicator is shallower
than the previous one, and the corresponding price valley is deeper than the
previous one. In addition, the indicator must not rise above the zero level. ( below pic.)

i wrote this ( not complete yet , must add alarm , arrow, send mail, alert, ....). there are all of Divergence type.

MACD Hidden divergence is used as a possible sign for a trend continuation.

This setup occurs when price retraces to retest a previous high or low.

1. Hidden Bullish Divergence

2. Hidden Bearish Divergence

Hidden Bullish Divergence

Forms when price is making a higher low (HL), but the MACD oscillator is showing a lower low (LL).

Hidden bullish divergence occurs when there is a retracement in an uptrend.

MACD bullish divergence

This divergence confirms that a retracement move is complete. This divergence indicates underlying strength of an uptrend.

Hidden Bearish Divergence

Forms when price is making a lower high (LH), but the MACD oscillator is showing a higher high (HH).

Hidden bearish divergence occurs when there is a retracement in an uptrend.

MACD bearish divergence

This setup confirms that a retracement move is complete. This diverging indicates underlying strength of a downtrend.

NB: Hidden divergence is the best
divergence to trade because it gives a signal that is in the same
direction with the trend. It provides for the best possible entry and is
more accurate than the classic type of diverging.